 | Check new customers creditworthiness before drawing up a contract ( click here to view credit checking companies )
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| Refuse orders, or obtain payment in advance, if a customer has an unacceptable payment record
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| Set strict credit limits and stick to them
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| Agree unambiguous written contracts and terms and conditions of trading with yuour customers
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| Involve the salesforce in negotiating the payment terms to ensure that these are agreed with customers from the outset
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| Initiate and maintain close contact with your customers, particularly with the person responsible for paying your account
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| Make regular credit checks on your existing customers
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| Put a "stop" on supplies to customers who are not paying and use their desire for further supplies as a spur to payment
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| If all alse fails, place the debt in the hands of a debt collection agency or a solicitor who specialises in debt collection
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| Consider factoring your invoices in future if collection is an ongoing problem and is affecting the liquidity of the company
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| Lastly, remember to thank those customers who do pay on time |
